Group 1 - RCM Technologies, Inc. closed at $25.85, reflecting a -1.07% change from the previous day, underperforming the S&P 500's gain of 0.4% [1] - Over the past month, RCM Technologies' shares increased by 12.17%, outperforming the Business Services sector's decline of 0.55% and the S&P 500's increase of 4.61% [1] Group 2 - Analysts expect RCM Technologies to report earnings of $0.61 per share, indicating a year-over-year growth of 8.93%, with revenue projected at $78.15 million, representing a 13% increase compared to the same quarter last year [2] - For the full year, earnings are projected at $2.2 per share and revenue at $313.89 million, reflecting changes of +8.37% and +12.76% respectively from the previous year [3] Group 3 - Changes in analyst estimates for RCM Technologies are important as they reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [4] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), has shown a strong track record, with 1 rated stocks delivering an average annual return of +25% since 1988; RCM Technologies currently holds a Zacks Rank of 3 (Hold) [5][6] Group 4 - RCM Technologies has a Forward P/E ratio of 11.88, which is lower than the industry average Forward P/E of 16.43, indicating a valuation discount [7] - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 153, placing it in the bottom 39% of over 250 industries [7] Group 5 - The strength of individual industry groups is measured by the Zacks Industry Rank, with the top 50% rated industries outperforming the bottom half by a factor of 2 to 1 [8]

Group 1 - RCM Technologies, Inc. closed at $26.64, with a decrease of -1.33% from the previous trading session, which is less than the S&P 500's daily loss of 0.07% [1] - The stock has increased by 16.68% over the past month, outperforming the Business Services sector's decline of 2.31% and the S&P 500's gain of 3.94% [1] Group 2 - RCM Technologies, Inc. is projected to report earnings of $0.6 per share, reflecting a year-over-year growth of 7.14%, with quarterly revenue expected to be $78.15 million, up 13% from the previous year [2] - For the full year, earnings are estimated at $2.19 per share and revenue at $313.89 million, indicating changes of +7.88% and +12.76% respectively from the prior year [3] Group 3 - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks RCM Technologies, Inc. at 3 (Hold) [5] - The Forward P/E ratio for RCM Technologies, Inc. is 12.33, which is lower than the industry average of 16.81, indicating that the company is trading at a discount compared to its peers [6] Group 4 - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 180, placing it in the bottom 28% of over 250 industries [6] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [7]

Group 1 - RCM Technologies, Inc. closed at $25.27, with a daily increase of +1.85%, outperforming the S&P 500's gain of 0.48% [1] - Over the last month, the company's shares increased by 9.83%, while the Business Services sector experienced a loss of 0.6% [1] - The upcoming earnings disclosure is projected to show an EPS of $0.6, a 7.14% increase year-over-year, and revenue of $78.15 million, reflecting a 13% increase [2] Group 2 - For the full year, analysts expect earnings of $2.19 per share and revenue of $313.89 million, representing increases of +7.88% and +12.76% respectively [3] - Recent revisions to analyst forecasts are important as they indicate short-term business trends, with positive revisions suggesting analyst optimism [4] - The Zacks Rank system, which evaluates estimate changes, currently ranks RCM Technologies, Inc. at 3 (Hold) [6] Group 3 - RCM Technologies, Inc. has a Forward P/E ratio of 11.33, which is lower than the industry average of 16.24 [7] - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 185, placing it in the bottom 26% of over 250 industries [7] - The Zacks Industry Rank indicates that top-rated industries outperform the bottom half by a factor of 2 to 1 [8]

Company Overview - RCM Technologies, Inc. is a provider of solutions aimed at enhancing client performance through advanced engineering, specialty healthcare, and technology services [1][3] - The company operates in key market segments including Healthcare, Engineering, Aerospace & Defense, Process & Industrial, Life Sciences, and Data & Solutions [3] Recent Developments - RCM Technologies was added to the Russell 3000 and small-cap Russell 2000 Indexes effective June 30, 2025, marking a significant milestone in the company's history [1][2] - The addition to the Russell 2000 is seen as the beginning of a new phase for the company, aiming to contribute to global infrastructure development [2] Market Context - Russell Indexes are widely utilized by investment managers and institutional investors, with approximately $10.6 trillion in assets benchmarked against the Russell US Indexes as of June 2024 [2] - FTSE Russell, the global index provider, calculates thousands of indexes covering 98% of the investable market globally, with around $18.1 trillion benchmarked to its indexes [4]

Group 1 - The article discusses RCM Technologies, Inc. (RCMT) and references previous analysis conducted after the third-quarter 2024 results were released [1] - It highlights that Robert F. Abbott has been involved in investing since 1995 and has experience with options trading since 2010 [1] Group 2 - No relevant financial performance data or specific company metrics are provided in the documents [2][3]

Core Viewpoint - RCM Technologies, Inc. (RCMT) has been gaining attention as one of the most searched stocks, prompting analysis of factors influencing its stock performance in the near future [1]. Earnings Estimates - RCM Technologies is expected to report earnings of $0.60 per share for the current quarter, reflecting a year-over-year increase of +7.1% [5]. - The consensus earnings estimate for the current fiscal year stands at $2.19, indicating a +7.9% change from the previous year, with no changes in estimates over the last 30 days [5]. - For the next fiscal year, the consensus estimate is $2.45, suggesting an increase of +11.9% compared to the prior year, also remaining unchanged over the past month [6]. Revenue Growth - The consensus sales estimate for the current quarter is $78.15 million, representing a year-over-year growth of +13% [11]. - For the current fiscal year, the sales estimate is $313.89 million, indicating a +12.8% change, while the next fiscal year's estimate of $328.91 million reflects a +4.8% change [11]. Recent Performance - In the last reported quarter, RCM Technologies achieved revenues of $84.47 million, a year-over-year increase of +17.4%, and an EPS of $0.63 compared to $0.53 a year ago [12]. - The company surpassed the Zacks Consensus Estimate for revenues by +13.74% and for EPS by +12.5% [12]. - Over the last four quarters, RCM Technologies exceeded EPS estimates once and revenue estimates once [13]. Valuation - RCM Technologies is graded A on the Zacks Value Style Score, indicating it is trading at a discount compared to its peers [17]. - The analysis of valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) is essential for determining the stock's intrinsic value and growth prospects [15][16]. Market Position - The stock has returned +0.9% over the past month, while the Zacks S&P 500 composite increased by +5.1%, and the Zacks Staffing Firms industry saw a decline of -2.8% during the same period [2]. - The Zacks Rank for RCM Technologies is 3 (Hold), suggesting it may perform in line with the broader market in the near term [7][18].

Company Performance - RCM Technologies, Inc. (RCMT) closed at $22.14, down 3.86% from the previous day, underperforming the S&P 500 which lost 0.22% [1] - The stock has increased by 1.81% over the past month, contrasting with the Business Services sector's decline of 4.75% and the S&P 500's gain of 0.45% [1] Upcoming Earnings - The company is expected to report an EPS of $0.6, reflecting a 7.14% increase from the prior-year quarter [2] - Revenue is forecasted to be $78.15 million, indicating a 13% growth compared to the same quarter last year [2] Fiscal Year Estimates - For the entire fiscal year, earnings are projected at $2.19 per share and revenue at $313.89 million, representing increases of 7.88% and 12.76% respectively from the previous year [3] Analyst Estimates - Recent changes to analyst estimates for RCM Technologies should be noted, as they reflect evolving short-term business trends [4] - Upbeat revisions in estimates suggest a favorable outlook on the company's health and profitability [4] Zacks Rank and Valuation - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks RCM Technologies at 3 (Hold) [6] - The Forward P/E ratio of RCM Technologies is 10.52, which is a discount compared to the industry average Forward P/E of 15.28 [7] Industry Context - The Staffing Firms industry, part of the Business Services sector, has a Zacks Industry Rank of 209, placing it within the bottom 16% of over 250 industries [7] - The Zacks Industry Rank assesses the strength of industry groups based on the average Zacks Rank of individual stocks [8]

Group 1 - RCM Technologies, Inc. closed at $22.60, reflecting a -1.18% change from the previous day, underperforming the S&P 500's loss of 1.13% [1] - The company's stock has decreased by 1.85% over the past month, contrasting with the Business Services sector's gain of 0.81% and the S&P 500's gain of 3.55% [1] Group 2 - RCM Technologies is expected to report an EPS of $0.6, indicating a 7.14% increase from the same quarter last year, with revenue forecasted at $78.15 million, a 13% rise year-over-year [2] - For the entire fiscal year, earnings are projected at $2.19 per share and revenue at $313.89 million, representing increases of +7.88% and +12.76% respectively from the prior year [3] Group 3 - Recent modifications to analyst estimates for RCM Technologies are crucial as they reflect changing near-term business trends, with positive revisions indicating optimism about the business outlook [4] - The Zacks Rank system, which evaluates estimate changes, has a strong track record, with 1 stocks averaging a +25% annual return since 1988; RCM Technologies currently holds a Zacks Rank of 3 (Hold) [5][6] Group 4 - RCM Technologies has a Forward P/E ratio of 10.44, which is a discount compared to the industry average Forward P/E of 16.13 [7] - The Staffing Firms industry, part of the Business Services sector, is currently ranked 219 in the Zacks Industry Rank, placing it in the bottom 11% of over 250 industries [7]

Financial Data and Key Metrics Changes - Consolidated gross profit for Q1 2025 was $22 million, a 7.9% increase over Q1 2024, marking the highest gross profit in the past twelve quarters [21] - Adjusted EBITDA for Q1 2025 was $7.8 million, compared to $6.2 million for Q1 2024, reflecting a growth of 14.4% [21] - Adjusted EPS for Q1 2025 was $0.63, up from $0.53 in Q1 2024, indicating an 18.9% increase [21] Business Line Data and Key Metrics Changes - In healthcare, gross profit for Q1 2025 was $12.2 million, compared to $11.1 million in Q1 2024, growing 10.2% [21] - Engineering gross profit for Q1 2025 was $6.2 million, up from $5.5 million in Q1 2024, a growth of 12.4% [22] - In IT, life sciences, and data solutions, gross profit for Q1 2025 was $3.6 million, down from $3.8 million in Q1 2024, a decline of 5.3% [25] Market Data and Key Metrics Changes - School revenue for Q1 2025 was $37.3 million, compared to $31.9 million in Q1 2024, reflecting a growth of 16.7% [22] - Non-school revenue for Q1 2025 was $6 million, slightly down from $6.3 million in Q1 2024, but would have been $5.5 million versus $5.1 million if excluding a large long-term care group [22] Company Strategy and Development Direction - The company is focused on cultivating the next generation of leadership and enhancing operational efficiency to ensure long-term success [4] - There is a strong emphasis on revenue expansion and new client acquisition, particularly in the healthcare and engineering sectors [6][9] - The company is capitalizing on technological advancements in AI and machine learning, with a significant expansion in manufacturing across its life sciences client base [7][8] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, focusing on secular themes that can drive growth [30] - The outlook for the business is strong, with expectations of continued low double-digit growth in adjusted EBITDA throughout fiscal 2025 [26] - Management anticipates Q4 2025 will produce the highest adjusted EBITDA quarter for the year [26] Other Important Information - The company has retired over 300,000 shares year-to-date, bringing the total repurchase over the last five years to nearly half of shares outstanding [20] - The balance sheet remains clean with significant financial flexibility and resilient organic growth [20] Q&A Session Summary Question: Is political policy uncertainty affecting the business? - Management indicated that they have not encountered significant issues related to the macroeconomic environment and are focused on leveraging secular themes for growth [30] Question: Regarding healthcare gross margins, is the lower margin due to legacy business? - Management clarified that the lower gross margin is more of a quarterly fluctuation rather than a trend, with expectations for improvement in Q2 [32][33]

Financial Data and Key Metrics Changes - Consolidated gross profit for Q1 2025 was $22 million, a 7.9% increase over Q1 2024, marking the highest gross profit in the past twelve quarters [21] - Adjusted EBITDA for Q1 2025 was $7.8 million, compared to $6.2 million for Q1 2024, reflecting a growth of 14.4% [21] - Adjusted EPS for Q1 2025 was $0.63, up from $0.53 in Q1 2024, indicating an 18.9% increase [21] Business Line Data and Key Metrics Changes - In the healthcare segment, gross profit for Q1 2025 was $12.2 million, compared to $11.1 million in Q1 2024, a growth of 10.2% [21] - Engineering gross profit for Q1 2025 was $6.2 million, up from $5.5 million in Q1 2024, representing a 12.4% increase, marking the best engineering gross profit quarter in history [21][22] - In IT, life sciences, and data solutions, gross profit for Q1 2025 was $3.6 million, down from $3.8 million in Q1 2024, a decline of 5.3% [24] Market Data and Key Metrics Changes - School revenue for Q1 2025 was $37.3 million, compared to $31.9 million in Q1 2024, reflecting a growth of 16.7% [22] - Non-school revenue for Q1 2025 was $6 million, slightly down from $6.3 million in Q1 2024, but would have been $5.5 million versus $5.1 million if excluding a large long-term care group [22] Company Strategy and Development Direction - The company is focused on cultivating the next generation of leadership and enhancing operational efficiency through strategic investments [4][12] - There is a strong emphasis on expanding the sales team to capitalize on growth opportunities in various sectors, particularly in healthcare and life sciences [5][7] - The company aims to maintain a clean balance sheet while continuing to repurchase shares, enhancing shareholder value [20] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in navigating macroeconomic uncertainties, focusing on secular themes that can drive growth [30][31] - The outlook for the healthcare segment remains positive, with expectations for continued growth in the upcoming school year [5][6] - The aerospace and defense sectors are anticipated to see significant growth due to new contracts and increased demand for engineering services [16][19] Other Important Information - The company has reduced net debt by $12 million to $18.2 million in Q1 2025, compared to $30.2 million in Q4 2024 [26] - The company has maintained a 90% plus renewal rate while preserving margins and bottom line strength [9] Q&A Session Summary Question: Is political policy uncertainty affecting the business? - Management indicated that they have not encountered significant issues related to the macroeconomic environment and are focused on leveraging secular themes for growth [30][31] Question: Regarding healthcare gross margins, is the lower margin due to legacy business? - Management clarified that the lower gross margin is more of a quarterly fluctuation rather than a trend, with expectations for improvement in Q2 [32][33]